The rental market is continuing to look strong for landlords as we head into summer, with Zoopla reporting a 7.8% increase in rental prices between March 2023 and March 2024.* Let’s explore how this increase benefits landlords and how a letting agent can help you increase rental prices correctly.

Benefits for landlords

Increased rental income

As inflation drives up expenses such as property taxes, maintenance, and insurance, landlords often adjust rental prices to maintain profitability and cover their investment costs. By making sure you don’t exceed inflation rates, you can remain competitive while still covering your expenses and improving your return on investment.

Financing property renovations

The additional rent income you earn from rental prices increasing can be allocated towards funding renovation projects aimed at enhancing the property’s overall value. These improvements could include upgrading appliances, improving energy efficiency, and modernising interior spaces, all of which can help you command higher rent prices and increase the property’s value to boost long-term profitability.

Mitigating financial risks

Increased rental prices also help you protect your finances and reduce the impact of unforeseen expenses, such as vacancy periods. Additionally, as you can allocate more funds to maintenance and repairs, you are less likely to encounter issues with your property in the future, further stabilising your income.

Why it’s important to set a realistic rental price

Tenant affordability

Although it may be tempting to significantly increase rent, it is important to keep any increases to a sensible level. Setting rental prices too high can outprice tenants and reduce the amount of interest in your property, potentially leading to costly vacancy periods. 

Tenant retention

Rental prices directly impact tenant satisfaction, so your current occupants are much more likely to stay in the rental property if they feel that they are receiving fair value for the rent they pay. If the rental price is too high, tenants could seek alternative housing options.

Market competition

An accurately priced rental property is a key component of remaining competitive in the market, as overpricing your property can deter potential tenants and lead to prolonged vacancy periods. Overall, setting a realistic rental price is essential to effectively navigate market competition, attract tenants, and optimise your property’s profitability.

How a letting agent can help you increase rent fairly

A letting agent can play a crucial role in helping you increase rent fairly by providing valuable market insights, professional guidance, and effective negotiation strategies. Using their expertise in the local rental market, letting agents can conduct in-depth analysis to guarantee that any proposed rent increase aligns with the current market conditions. 

Additionally, letting agents can advise you on the best timing and rate of rent adjustments to maximise rental income while remaining competitive and fair to tenants. By setting a realistic rental price that aligns with rental inflation, comparable rates in the area, and the property’s value, you can ensure that your property remains accessible and affordable for a broader range of tenants.

As we head into the summer months, the property market is continuing to bolster as an increase in market activity continues to benefit home movers. Let’s take a look at recent property market data and how the current market conditions benefit sellers and buyers alike.

Recent market data

According to Zoopla's house price index, there were 20% more properties for sale in March 2024 than the previous year.* There was also a 9% rise in sales agreed during this time period.*

This rise in market activity is partly due to an increase in the average working wage and an overall robust job market, both of which boost consumer confidence. In fact, confidence in personal finances has reached the highest level in more than two years, according to GFK's Consumer Confidence Barometer.** This made homeowners considerably more interested in buying a new home, therefore increasing market activity.

Benefits for buyers

More choice

An increase in market activity leads to a wider range of choices available for buyers to consider. This improved choice empowers buyers to explore various properties, compare features and prices, and ultimately make more informed decisions that align with their preferences and needs.

Price stability

The market remains well balanced as the demand for properties and the supply of homes for sale have equally increased. Because of this, prices are less likely to fluctuate, potentially making for a more stable investment. Increased market activity also helps to create a clearer picture of the true value of properties, further contributing to stable pricing.

More negotiating power

Due to increased confidence, buyers have the opportunity to be more assertive when negotiating a price for a property. Since the supply of properties is so high, buyers are less desperate to secure a particular property and can carefully consider their options.

More opportunity for investment

For those looking to invest in property, the increased supply increases their options massively. In a busy market, investors can buy a property, make renovations, and sell for a profit in a shorter timeframe.

Benefits for sellers

Increased demand

With more people in the market for a new home, sellers can command higher sale prices for their properties as buyers engage in bidding wars. By achieving a higher sale price, sellers can then look for a higher-value property than they previously considered possible.

Faster sales

The increased level of demand makes it easier for sellers to find potential buyers, which can lead to faster sales and less problematic property chains. Additionally, if a buyer is particularly interested in a property, they may be willing to pay a slightly higher price to secure a quick sale.

Flexible terms

Strong demand can give sellers the upper hand in negotiating certain terms. For example, if the seller needs to close the sale quickly, they can choose the buyer who is in the best position to complete the transaction as soon as possible.

Less pressure

In a balanced and active market, sellers may experience less pressure to accept lower offers or make compromises that they're uncomfortable with. They can feel confident that a more suitable buyer will soon show interest and make a better offer.

How an estate agent can help

Estate agents use their in-depth knowledge of the property market to assist buyers and sellers alike in taking advantage of summer 2024’s active market. They have access to a wide range of property listings and can help movers identify suitable properties that match their needs and preferences. They are also skilled negotiators who can secure favourable terms and prices while guiding movers through every step of the process.

Building a property portfolio in today’s complex and fast-evolving UK housing market can be both a profitable and secure long-term strategy. With rental demand surging, property values fluctuating across regions, and economic uncertainty affecting financing, a smart, strategic approach is more important than ever.

Whether you’re a first-time investor or expanding your portfolio, here’s a detailed, up-to-date guide to navigating the UK property market in 2025.

1. Set Clear Investment Goals

Your first step should always be defining your purpose:Rental Income: Are you looking for steady monthly cash flow? If so, research on the areas you wish to invest in will help when defining clear goals such as rental yield and investment required.Capital Growth: If long-term value appreciation is your focus, consider areas with infrastructure investment and plans for future developments.Use SMART goals (Specific, Measurable, Achievable, Relevant, Time-bound) to define what you want your portfolio to achieve—e.g., “Earn £1,500 in net rental income monthly within 3 years.

2. Research the Market Thoroughly

Thorough market research is your best defence against bad investments.

Key considerations in 2025 include:Interest rates: The Bank of England base rate is hovering around 4.25%, affecting mortgage affordability and BTL profits.Rental market dynamics: A chronic shortage of rental homes—especially in major cities—has led to record-high rents.Policy shifts: The Renters Reform Bill, now in effect, has scrapped Section 21 “no-fault” evictions, impacting how landlords manage risk.

Property websites can help you analyse rental yields, price growth, and tenant demand.

3. Diversify Your Investments

Diversification is key to reducing risk and enhancing your returns. In 2025, a well-rounded portfolio might include:Residential properties: The backbone of most portfolios.Student lets: Strong demand close to universities but be wary of seasonal vacancies.HMOs (houses in multiple occupation): Higher returns but require licensing and regulatory compliance.Commercial units or mixed-use: Attractive to experienced investors, especially in high-street regeneration zones.Short-term lets: Lucrative in holiday hotspots, but subject to increasing local restrictions and licensing schemes.

4. Stay Informed and Adapt

The UK housing market is volatile, shaped by global economic trends, domestic policies, and shifting demographics. As a property investor in 2025:Monitor rental reforms: Regulations around EPCs, eviction processes, and local licensing continue to evolve.Watch tax developments: The 3% second-home stamp duty surcharge, Capital Gains Tax changes, and potential future wealth taxes all impact investor returns.Build a network: Join landlord associations, attend property investment expos, and follow trusted property analysts.

Consider hiring a property manager or portfolio advisor once you have more than 3–5 properties to streamline compliance, tenant management, and void reduction.

Building a property portfolio in today’s UK housing market is as much about adaptability as it is about ambition. With rising interest rates, evolving legislation, and high tenant demand, the landscape presents both risks and opportunities. 

Think long-term, diversify smartly, and don’t hesitate to seek expert advice. Your property empire doesn’t have to start with millions—just a well-informed first step.

 

Starting on 14 May 2025, letting agents across the UK are legally required to conduct financial sanctions checks on all prospective landlords and tenants, regardless of the rental value. This change aims to enhance efforts against financial crime and ensure compliance with the UK's financial sanctions regime. If you are a self-managing landlord, you will also be required to check your own tenants by making anti money laundering checks.

Here are some of the key requirements for lettings agents:

Mandatory Screening: Letting agents must verify the identity of all parties involved in a tenancy agreement and check them against the UK's consolidated financial sanctions list.

No Rental Threshold: Unlike previous regulations, there is no minimum rental value threshold; all lettings are subject to these checks.

Reporting Obligations: If an agent knows or suspects that a person is designated under financial sanctions, they must report this to the Office of Financial Sanctions Implementation (OFSI) immediately.

Record-Keeping: Agents are required to maintain detailed records of all sanctions checks, including the date of the check and its outcome.

Moving in soon? Here’s what to check in your inventory
Moving into a new property is always an exciting time, but it’s also a crucial moment to ensure that everything is in order—especially when it comes to the inventory. The inventory is a detailed list of the items in your rented property, including any furniture, fixtures, and fittings, as well as their condition.

In the UK, especially in a rental market where disputes over deposits are common, ensuring the accuracy of the inventory can protect your finances and your peace of mind. According to data from the Tenancy Deposit Scheme (TDS), in 2023 around 65% of deposit disputes in England and Wales relate to cleaning or damage, both of which can be pre-emptively managed with a well-documented inventory.

Check the condition of the property
Start by going room to room and verifying that the condition described in the inventory matches reality. This includes:

• Walls and paintwork: Note any scratches, dents, or discolouration.
• Carpets and flooring: Look for stains, burns, or worn areas.
• Windows and doors: Ensure all locks work and that there are no cracks or condensation issues.

Take dated photographs and short videos of each room, focusing on any wear and tear. Under the Tenant Fees Act 2019, landlords cannot charge for fair wear and tear, but without documentation, "fair" is subjective.

Inspect furniture and appliances
Next, pay attention to the furniture and appliances provided by the landlord. Make sure all items listed are present, including things like chairs, tables, beds, and kitchen appliances. Inspect each piece for any visible wear or damage and ensure everything is in working order. This is especially important for appliances like fridges, cookers, and washing machines. If anything is broken or missing, let your landlord or agent know immediately to avoid future disputes.

Check safety equipment
In the UK, landlords are legally required to ensure:

• A working smoke alarm is fitted on every floor.
• A carbon monoxide alarm is installed in every room with a solid fuel-burning appliance.
• Annual gas safety checks are carried out (and you should receive a copy of the certificate).

Press the test buttons on alarms to confirm they’re operational. If anything isn’t working, notify the landlord immediately - this is a legal issue, not just an inventory one.

Note cleanliness and hygiene standards
Cleanliness is one of the most common causes of dispute at the end of tenancies.

• Inspect kitchens and bathrooms: Check for limescale, mould, dirty ovens, or food remnants.
• General cleanliness: Cobwebs, dust, or leftover rubbish may indicate the property wasn’t professionally cleaned.

In England, professional cleaning charges can no longer be written into tenancy agreements as mandatory under the Tenant Fees Act 2019. However, tenants must return the property in the same state of cleanliness it was received—making an accurate inventory crucial.

Protect yourself from future disputes
By thoroughly checking the inventory, you’re protecting yourself from any future disputes. If you have any questions or need assistance, don’t hesitate to contact us. We’re here to help make your move-in process as smooth as possible.

Understanding the importance of documentation
Selling a property involves more than just setting a price and putting up a ‘For Sale’ sign. One of the most important steps in the process is ensuring that all your documentation is ready. Having your paperwork organised not only speeds up the sale but also helps avoid any complications down the line. Buyers want transparency, and having the correct documents available will give them confidence in their decision-making.